No. 19.
Mr. Osborn to Mr. Frelinghuysen

No. 35.]

Sir: The Bolivian minister here has been engaged for several months in the effort to effect an arrangement with the Brazilian Government, which will permit Bolivia to avail herself of the waters of the Amazon for commercial purposes, free from duties, and his labors have finally resulted in the signing of a treaty to that end.

The imperial government had already, by decree of December, 1866, guaranteed to the merchant ships of all nations the free navigation of the Amazon and its tributaries. But Bolivian commerce, to reach the Amazon, must avail itself of the Madeira and Marmoré Rivers, the navigation of which is interrupted for some distance within the Brazilian jurisdiction by huge cataracts; and to overcome this difficulty it is proposed [Page 29] to construct a railway around the falls, a distance of nearly two hundred miles.

It is sought by the treaty to apply the same principle to the railway for the purpose of Bolivian commerce that has already been adopted concerning the rivers, and to that end it is stipulated that the use of the road shall be conceded, for the term of fifty years, as well for importations as exportations, free from all and whatever imposts, general, provincial, or municipal, and that it shall only be subject to the tariff that may be established for the transportation of persons and merchandise without distinction of nationality or origin. It is also agreed that the Marmoré River above the falls, whether in Brazilian or Bolivian territory, shall be open to free navigation by both nations.

The treaty is silent regarding the time within which the railway is to be built, but it is understood that the Brazilian Government is considering the subject now, and I judge that during the present session of Congress some action will be had having in view the early completion of the work.

Geo. Earl Church, an.American citizen, was granted a privilege for the construction of this road in 1870, but after the expenditure of considerable money, and the performance of much labor by the contractors, Messrs. Collins, of Philadelphia, the work was abandoned. Mr. Church has signified his willingness to again undertake the enterprise if the government will concede him the guarantees which are customary in the country, and I shall not be surprised if he is yet permitted to prosecute the work to conclusion.

The tributaries of the Amazon are navigable to the very heart of Bolivia. The vast territory lying to the east of the cordillera of the Andes, in Northern and Central Bolivia, is bathed by their waters, and its commerce should find its way to the sea between their banks. Nature has certainly performed her part in affording that country an outlet. It rests now with man to perform his.

It is thought that the treaty will be ratified by the Brazilian Congress.

I have, &c.,

THOMAS A. OSBORN.